United States Cannabidiol Market

United States Cannabidiol Market Size and Share:

The United States cannabidiol market size was valued at USD 2.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 20.3 Billion by 2033, exhibiting a CAGR of 27.8% from 2025-2033. The market is witnessing significant growth due to growing consumer awareness and demand for natural wellness products and supportive legal and regulatory developments. Additionally, increasing product diversification, expansion of CBD in pet care products, and growing acceptance in mainstream retail further propel the market growth.

One of the major drivers of the United States cannabidiol (CBD) market is the increasing consumer awareness of CBD's potential health and wellness benefits. For instance, in 2024, according to Charlotte’s Web company, 5.4 million people use non-intoxicating and natural CBD products. As consumers seek natural alternatives to traditional pharmaceuticals, CBD has gained popularity for its reported ability to alleviate anxiety, reduce inflammation, and manage pain. The growing interest in plant-based and organic products aligns with the broader wellness movement, driving demand for CBD in various forms, including oils, tinctures, capsules, and edibles. The legalization of hemp-derived CBD products under the 2018 Farm Bill has further strengthened the market by legitimizing its use in wellness and dietary supplements, encouraging both consumer adoption and industry investment.

This market is highly driven by the changing legal and regulatory framework in the United States. The Farm Bill, for example, legally allowed hemp-derived CBD to thrive by removing it from the Controlled Substances Act, providing a basis for the growing market. Subsequently, states have added their regulatory frameworks to explain the production, distribution, and sale of CBD products. This regulatory support is encouraging further investment in businesses related to CBD, allowing for its further innovation and availability within products. Organizations like FDA continue to work hard to complete comprehensive guidelines about the proper use of CBD in foods, beverages, and dietary supplements. For instance, The FDA and FTC issued warning letters to six companies, including Hippy Mood and GrowGod LLC, for selling illegal delta-8 THC copycat food products, violating the Federal Food, Drug, and Cosmetic Act. These regulatory actions provide a framework for industry players to operate transparently, ensuring quality and safety standards, thereby solidifying CBD’s position in the health and wellness industry.

United States Cannabidiol Market Trends:

Increased Product Diversification

The United States CBD market is highly diversified due to the various products being launched into the market by companies trying to cater to diverse consumer preferences. This includes oils, tinctures, gummies, capsules, topical creams, and beverages. For example, in 2024, Extract Labs introduced USDA-Certified Organic CBD Gummies with Full Spectrum and THC-free options and 50mg per gummy to be used in stress relief, mood elevation, and well-being. Another notable point is that CBD-infused functional foods and beverages are growing in popularity, catering to health-oriented consumers who want a convenient way of adding wellness to their everyday lives. New formats like CBD-infused sparkling waters, protein bars, and even pet products represent the market expanding into niche segments. Not only does this diversify the consumer base, but it also makes brands differentiate themselves in a competitive environment.

Expansion of CBD in Pet Care Products

With increased demand for natural remedies to combat health issues in pets, CBD pet care is becoming increasingly popular. With CBD-infused oils, capsules, and treats being marketed towards their potential benefits in dealing with anxiety, pain, and mobility-related issues in pets, such interest and demand are not surprising. For example, in 2024, CV Sciences introduced +PlusCBD Pet chews targeting dog joint pain and anxiety in a market where the desire for natural wellness products grows with the increasing adoption of CBD by pet owners. The company reported one in five dogs suffer joint pain and 70% anxiety-related behaviors. More pet owners are now realizing the therapeutic value of cannabidiol, making this demand for CBD-infused pet products unprecedented, reflecting the natural and holistic approach towards the health of animals.

Growing Acceptance in Mainstream Retail

Mainstream retail acceptance of CBD products is a major factor in market trends. Large retailers like Walgreens, CVS, and Kroger are increasing their CBD product offerings, which makes the products more accessible to consumers. For example, Charlotte's Web CBD products debuted in 827 Walmart locations throughout California, Illinois, Florida, Texas, and Pennsylvania in 2024 to bring their hemp-derived wellness topicals to key U.S. markets. This shift from niche specialty stores to widespread retail outlets demonstrates increasing consumer confidence and regulatory clarity. The availability of CBD products in mainstream channels also normalizes their usage, fostering greater market penetration. Combined with targeted marketing strategies, this trend is driving robust growth in the United States CBD market.

United States Cannabidiol Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States cannabidiol market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product, source type, grade, and sales type.

Analysis by Product:

• CBD Oil
• CBD Isolates
• CBD Concentrates
• Others
   

CBD oil is the US cannabidiol market leader, a concentrated form of cannabidiol extracted from hemp. It is highly versatile and serves various applications, such as wellness, pain management, and anxiety relief. Pharmaceutical, dietary supplement, and personal care product integration is driving consumer adoption and market growth.

CBD isolates, the purest form of cannabidiol, contain 99% or higher CBD concentration without other cannabinoids or terpenes. In the US cannabidiol market, they cater to consumers seeking THC-free solutions. Their versatility supports incorporation into wellness products, cosmetics, and pharmaceuticals, driving demand for precise, high-quality formulations across diverse industries.

CBD concentrates are highly potent cannabidiol extracts, offering high purity and effectiveness. In the US cannabidiol market, they cater to consumers seeking strong therapeutic benefits and manufacturers requiring precise formulations. These concentrates are essential in producing advanced wellness, pharmaceutical, and cosmetic products, driving innovation, and meeting growing market demand.

Analysis by Source Type:

• Marijuana
• Hemp
   

Marijuana, as a source type in the cannabidiol market, provides CBD extracts with higher THC levels, catering to medical and recreational applications. In the US cannabidiol market, it serves patients requiring potent therapeutic effects, and supporting treatments for chronic pain, epilepsy, and anxiety, while driving innovation in premium CBD-infused products.

Hemp, a primary source of cannabidiol, provides CBD extracts with minimal THC content, complying with federal regulations. In the US cannabidiol market, hemp serves as a cornerstone for manufacturing CBD oils, isolates, and edibles, catering to wellness, pharmaceutical, and cosmetic applications while meeting growing consumer demand for non-psychoactive CBD products.

Analysis by Grade:

• Food Grade
• Therapeutic Grade
   

Food-grade cannabidiol is a CBD-based product that is of strict safety and quality standards for consumption. In the US cannabidiol market, this grade is very important in producing edibles, beverages, and supplements to ensure compliance with regulatory requirements and to meet consumer demand for safe, high-quality CBD-infused food and wellness products.

Therapeutic-grade cannabidiol is specifically formulated for medical and wellness applications, ensuring high purity and potency in treating conditions such as chronic pain, anxiety, and inflammation. In the US cannabidiol market, it supports pharmaceutical innovations and clinical research that are meeting the growing demand of consumers and healthcare providers for effective, high-quality therapeutic CBD solutions.

Analysis by Sales Type:

• B2B
• B2C
   

B2B sales in the cannabidiol market involve transactions between manufacturers, wholesalers, and retailers, facilitating bulk distribution of CBD products. In the US cannabidiol market, this segment streamlines the supply chain, enables large-scale production, and supports businesses in meeting consumer demand efficiently through reliable sourcing and strategic partnerships.

B2C sales in the cannabidiol market refer to direct transactions between businesses and consumers through retail outlets, e-commerce platforms, or brand-owned stores. In the US cannabidiol market, this segment enhances accessibility, fosters personalized customer engagement, and drives brand loyalty by offering a wide range of CBD products tailored to individual needs.

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

The Northeast region plays a pivotal role in the US cannabidiol market through its growing consumer base, progressive regulatory environment, and robust retail networks. This region drives market expansion by fostering innovation in CBD products, supporting local manufacturers, and catering to increasing demand for wellness and therapeutic cannabidiol solutions.

The Midwest contributes significantly to the US cannabidiol market through its expanding hemp cultivation, favorable agricultural resources, and supportive regulatory developments. This region serves as a key production hub, fostering supply chain efficiencies and driving market growth by catering to the rising demand for high-quality CBD products across various industries.

The South region supports the US cannabidiol market through extensive hemp farming, favorable climate conditions, and progressive legislation. With its robust agricultural infrastructure and growing consumer demand, the region drives production, innovation, and distribution of CBD products, establishing itself as a crucial contributor to the industry's nationwide expansion.

The West region serves the US cannabidiol market through its advanced hemp cultivation practices, progressive regulatory framework, and strong consumer demand. Home to leading CBD manufacturers and innovative product development, this region drives market growth by fostering research, promoting wellness trends, and supporting a robust supply chain for CBD products.

Competitive Landscape:

Established players and new emerging brands have been competing aggressively in the US cannabidiol market by concentrating on product innovation, quality, and compliance. Leaders are capitalizing on advanced extraction technologies, strategic partnerships, and targeted marketing to reinforce their position in the market. Regulatory developments, consumer preferences for natural wellness solutions, and ongoing investments in research and development further shape the landscape by driving differentiation and competition across diverse CBD product categories. For instance, in 2024, CV Sciences agreed to acquire Extract Labs for $400,000 cash and $1,000,000 in stock, expanding its portfolio of premium cannabinoid products like gummies, topicals, and tinctures.

The report provides a comprehensive analysis of the competitive landscape in the United States cannabidiol market with detailed profiles of all major companies.

Latest News and Developments:

• In 2024, Jazz Pharmaceuticals patented a CBD formulation with over 90% CBD and specific THC ratios, demonstrating enhanced disease treatment efficacy through synergistic effects of minor impurities like THC, boosting CBD's therapeutic potential.

United States Cannabidiol Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States cannabidiol market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States cannabidiol market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States cannabidiol industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.